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Honda to cut North American production by 50%

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Honda Motor Co. Ltd. will cut production at its North American vehicle assembly plants by 50 percent until Nov. 10 because of disruptions caused by flooding in Thailand.

“A number of Honda suppliers in Asia currently are unable to maintain parts production, which is disrupting the flow of parts to our production operations in North America,” Honda said in a statement Monday.

The auto maker has cancelled all Saturday overtime this month and scheduled a non-production day for Nov. 11.

The cuts could also affect the date when the redesigned 2012 version of the Honda CR-V crossover goes on sale in Canada.

The latest disruption came just as Honda of Canada Mfg. in Alliston, Ont., was gearing up to boost production of the Honda Civic, its most popular vehicle in Canada and the best-selling passenger car in Canada for the past 13 years. Another Civic plant in Greensburg, Ind., is in the process of adding a second shift to increase output of the compact cars.

Production in Alliston and other Honda facilities was severely curtailed this spring and summer after the March 11 earthquake, tsunami and nuclear crisis in Japan created havoc in the company’s supply chain. Other Japan-based auto makers were also affected, as they have been by the flooding in Thailand.

Toyota Motor Manufacturing Canada Inc. said last week it will curtail overtime at its two Canadian plants as part of a North American-wide production cutback caused by the supply chain disruptions arising from the flooding.

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